Distribution Received: During the second year, the taxpayer received $5,000, but importantly, this money was not from the business's profits. Hypothetical Scenario: If this $5,000 distribution had been received in the first year, it would have affected how much of the loss the taxpayer could have deducted. Calculate the new amount at risk after receiving the distribution. Calculation: Original Amount at Risk ($15,000) - Distribution Received ($5,000) = $10,000 adjusted at-risk amount.